Money markets are changing dramatically in many ways, but with increasing awareness and appeal of buying non-performing loans from banks also comes huge opportunities for those with access to the right data, connections, and funding to make a killing flipping non-performing notes.
There is huge potential in this strategy today as this is where the big money prefers to go, and with global commercial real estate investment rising 11% year over year in the first half of 2013, and more to come in the second, we’ll see dramatic wealth redistribution. The beautiful part of it for smaller investors is that you don’t even need your own capital at all, with many commercial lenders and funds virtually scrambling over each other in hopes of putting their money to work in the form of transactional funding for notes.
How to Find a Transactional Funder
Where do you get transactional funding for 100% cash leverage? And where can you find enough inventory to fill the massive demand out there?
Flipping non-performing notes may not be completely new, but there has perhaps never before been such a large amount of inventory and demand on the flip side. So if you’ve got the product and let people know, then you shouldn’t have to break a sweat bringing in some serious money in the next few months.
Notes are everywhere today. But those who want to turn significant volumes of these distressed debt instruments will absolutely want to streamline the process by tapping into large banks of data like BankProspector. This software will also provide access to the necessary contacts and deal makers to speed things along as well.
So that just leaves the question of coming up with the cash.
Of course, not all of those offering transactional funding for flipping notes are created equal, are well established or come with cheap fees. So do your homework, shop around, and check out their reputations. Some transactional and bridge financing lenders you may want to take a look at include Best Transaction Funding, Vortex, Aegis and Apollo Financial Group.